Gold prices and precious metals bulls have been biding their time.
While gold has traded sideways-to-lower, bullish investors have simple sat tight, waiting for a bigger move.
I have shared today’s chart pattern several times (read this article from over a year ago), but it seems important to update once again as we ask the question, “Is a big move nearing?”
Above is a long-term monthly chart of the gold-U.S. dollar ratio.
After a sharp rise into 2011, this gold ratio declined sharply over several years before bottoming and rising sharply into 2020. This formed a bullish “cup” pattern. And it appears the past 18 months may have formed the “handle.”
A bullish reversal pattern could be in play as gold attempts to hold on to near-term support. Metals bulls sure would like to see a rally start right here! Stay tuned.